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The World Bank BD: Integrated Digital Government Project (P161086)

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Combined Project Information Documents / Integrated Safeguards Datasheet (PID/ISDS)

Appraisal Stage | Date Prepared/Updated: 23-Jan-2018 | Report No: PIDISDSA21740

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BASIC INFORMATION

OPS_TABLE_BASIC_DATA A. Basic Project Data

Country Project ID Project Name Parent Project ID (if any)

Bangladesh P161086 BD: Integrated Digital Government Project

Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead)

SOUTH ASIA 16-Jan-2018 11-Jul-2018 Transport & Digital Development

Financing Instrument Borrower(s) Implementing Agency

Investment Project Financing Ministry of Finance Bangladesh Computer Council

Proposed Development Objective(s)

The development objective is to improve digital integration across GOB agencies, and catalyze digital public services.

Components

Physical and Financial Contigencies Component 1: Enabling Environment for Digital Government Integration Component 2: Supply-Side Digital Government Platform Component 3: Demand-Side Enablement and Services Component 4: Project Management Support

Financing (in USD Million)

Finance OLD

Financing Source Amount

Borrower 5.00

International Development Association (IDA) 300.00

Total Project Cost 305.00

Environmental Assessment Category

C - Not Required Decision

The review did authorize the preparation to continue


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Other Decision (as needed) B. Introduction and Context

Country Context

Bangladesh is one of the world’s most populous country with an estimated 160 million people in a geographical area of about 144,415 km2 and per capita income of US$1,409 in 2016, well above the lower-middle-income country category threshold which it crossed in FY14. During recent years, economic conditions improved in the country with headline inflation declining to 5.9 percent in FY16 from 7.3 percent in FY14, while the fiscal deficit was contained at around 3.1 percent of gross domestic product (GDP) in FY16. The FY17 budget targets 5 percent deficit with 28.7 percent growth in expenditures. The current account surplus rose to 1.7 percent of GDP in FY16. The GDP grew well above the average for developing countries in recent years, averaging 6.5 percent since 2010, with an officially reported growth of 7.1 percent in in FY16, driven by manufacturing and services. Progress on reducing extreme poverty and boosting shared prosperity through human development and employment generation has continued with the poverty incidence based on the international US$1.90 per capita per day poverty line (measured on the basis of the purchasing power parity exchange rate) declining from 44.2 percent in 1991 to 18.5 percent in 2010 (latest available poverty data) and a projected 14.9 percent in 2016. Bangladesh’s performance against the Millennium Development Goals is impressive against the South Asia Region average for most of the economic indicators .Such progress notwithstanding, the country needs more effort in improving its growth rate to meet its target of moving up the middle-income rankings by 2021. For accelerating private sector-led growth with an improved investment climate, the key challenges are the need for increased infrastructure and power, with much improved quality in spending public resources, better regulations, and enhanced skills of its vast and rapidly increasing labor force.

Sectoral and Institutional Context In 2009, the Government of Bangladesh (GOB) set out an ambitious ‘Digital Bangladesh’ agenda for the country, which eight years on, remains core to the Government’s overall strategy to leverage information and communication technology (ICT) for the country’s development. For example, the Seventh Five Year Plan set out comprehensive plans to use ICT to ensure citizen participation, social inclusion, and empowerment; to promote good governance and efficient delivery of public services; and to drive economic growth.

Based on the GOB’s highly positive results from its recent efforts, the Government intends to take a more strategic, holistic, and integrated (whole-of-government [WOG]) approach to improving governance, and increasing and improving digital services to citizens and businesses as well as within the Government. The WOG approach for digital government has been a long-term strategy of many governments around the world over the past 10 years. This ‘one-stop government’ approach moves isolated silos in public administration to formal and informal integrated networks. It is a global practice driven by societal forces and the opportunities presented by the Internet, to transform the way that governments work for citizens. The WOG approach for ICT has been proven to achieve higher Government efficiencies, enable cross-agency coordination of resources and services, and foster one-stop governance transformation and digital service delivery. Numerous countries such as Australia, Korea, Singapore, and the United Kingdom have successfully implemented the WOG approach. Bangladesh could benefit from this globally proven WOG approach to support the country’s ambitious development goals. The country currently has an opportunity to learn from and adopt global best practices on WOG transformation—and to achieve higher impact at lower cost than the early adopters of WOG approaches, by starting at a far earlier stage. The Government also has an opportunity to establish the key governance processes and platforms needed for a


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WOG approach now, before it makes significant technology investments in digitising transactions and common business processes within GOB agencies. By establishing common infrastructure, development platforms, and services for common use by GOB agencies, the WOG approach will alleviate or eradicate the need for GOB agencies to invest in their own ICT resources, significantly reduce ICT operational and overhead costs, reduce cyber vulnerability, improve interoperability and coordination between systems and agencies, and enable the agencies to focus on core digital services delivery instead of technologies. Having recently experienced cybersecurity challenges at Bangladesh Bank, a WOG approach will also help Bangladesh to improve the security of their digital government systems to protect the public administration from continual and evolving cyber threats. There is also an opportunity for this project to provide common digital enablers for all other World Bank-supported projects. All these projects contain ICT components; such as application development, hardware and system software purchase and setup, and service provision to citizens and businesses. All these projects also need to have a basic level of cybersecurity. World Bank-supported projects that are already using the LICT Project’s basic foundations include those for national identification system (national ID), value added tax modernization, Bangladesh Bureau of Statistics, and so on. The ongoing projects will also be provided cost-benefit analysis and guidance as part of a migration strategy and assessment framework, that the project will establish to enable future migration to the digital platform. Pipeline projects can also be designed to leverage a WOG digital platform from the start.

C. Proposed Development Objective(s)

Development Objective(s) (From PAD) The development objective is to improve whole-of-government digital integration and public services.

Key Results

Progress toward the achievement of the PDO would be assessed using the following results indicators: (a) Percentage of cost savings on GOB’s spending on ICT across agencies (b) Number of key WOG guidelines, policies and/or regulations approved by the relevant higher authorities (c) Percentage of agencies using two or more whole-of-government functions integrated by the Project (e.g. infrastructure-, platform-, software-, and/or application-as a service) (d) Availability of integrated digital services for citizens and/or businesses Intermediate outcomes would be tracked using the following results indicators: (a) Number of GOB agencies with improved basic cybersecurity at the platform level (b) Number of GOB agencies with improved basic cybersecurity at the platform level (c) Availability of forward-looking digital strategy and plan for the government (d) Percentage of government beneficiaries satisfied with the capacity building and change management provided (e) 5 million citizens (50 percent women) as initial users of the digital services developed by the Project (f) Percentage of digital services incorporating beneficiary consultation and feedback into its design D. Project Description


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The project is building on the success of the LICT Project’s e-Government component and will continue to support the country’s Digital Bangladesh agenda by (a) providing a WOG digital platform for GOB agencies to use and deliver value to their internal and external constituents; (b) promoting and supporting the development of strategic and quick-win digital services for citizens and businesses; and (c) generating usage of the digital platform and services through holistic activities for better governance, change management, and digital services promotion. The ‘build once, reuse everywhere’ WOG digital platform will consist of common digital government infrastructure, cloud platform, and software services. This will help the GOB to avoid fragmentation, duplication, and increase the effectiveness of its ICT investments across all sectors and agencies. The project does not aim to consolidate and centralize IT systems across other agencies; instead the line agencies will continue to own and manage their own databases, applications, and services, but would make use of the common WOG platform to build or operate their systems in a more cost-effective, reliable, secure, and convenient manner, and deliver value to their internal and external constituents. The project will provide line ministries with the technical platforms to present an integrated view of all their services, including those of legacy applications, to the citizens and businesses. This strategic platform will also provide shared systems that line agencies can use to accelerate the implementation of their digital services. It will also allow these line agencies to collect and analyze data derived from a multitude of sources to generate new insights, transform public service delivery, and enrich collaboration with industry sectors. The project will also take advantage of new architectural approaches—for example, microservices and DevOps—to facilitate speed, agility, and reuse of solutions, as well as allowing for greater innovation in the design and delivery of digital services. The project will also promote the development and offering of at least 30 new digital services by GOB agencies for citizens and businesses to benefit from access to more value-added online services. It will also develop up to four key integrated services that incorporate cross-agency coordination in processes and systems. These are expected to bring additional value to citizens and businesses and demonstrate to other GOB agencies the value of an integrated approach for their constituents. Finally, the project will build on existing pilot work to develop an open data platform in the GOB, to provide a rich platform for citizens, businesses, academia, and civil society to access, analyze, and innovate with Government data. The WOG platform would consist of four components, which are illustrated in figure 1.


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Figure 1. Diagrammatic Illustration of Project Components

This project structure reflects international best practice and learnings on the critical success factors for WOG digital transformation. Equal weight, in terms of project delivery and governance, will be placed on all the components, even though Component 2 is the largest component in technical and financial terms. This will ensure that the project is (a) demand-driven, not technology-led; (b) aligned with the GOB’s broader vision, policies, strategies, and action plans; (c) focused on the needs of its beneficiaries—Government agencies, citizens, businesses, and civil society; and (d) based on sound political economy analysis, understanding, and action plans, to ensure that stakeholder issues are identified and addressed. The project will also employ disbursement-linked indicators (DLIs), under Component 1. E. Implementation

Institutional and Implementation Arrangements

Building sustainable capacity to manage, implement, mitigate operational and fiduciary risks in a WOG approach to

digital government are the guiding principles of the institutional and implementation arrangements of the project.

The project will be implemented by the BCC. The GOB will also establish an empowered Interministerial IDGP Steering Committee (SC) chaired by the Secretary, ICT Division, which will provide policy directions, oversee overall project implementation, and carry out joint annual reviews. The IDGP SC will include members who are senior Government officials not below the rank of joint secretary from several ministries/agencies including the Finance Division; Planning and Implementation Monitoring and Evaluation Division (IMED); Law; local government; Agriculture; Health; Education; Commerce; National Board of Revenue; Bangladesh Investment Development Authority; and A2I Programme. The MOPTIT will also provide overall guidance and policy support to the project.

Component 1: Enabling Environment for Digital Government Integration

Component 4: Program Management Support

Component 2: Supply-Side Digital

Government Platform

Component 3: Demand Side

Enablement and Services


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Figure 2. Overview of Institutional Structure for IDGP

The BCC will serve as the Secretariat to the IDGP SC. The Executive Director of the BCC will provide direct guidance to the Project Director (PD) of the PMO and others involved in implementation of different components of the project and resolve implementation issues. Implementation of subprojects under the Digital Services Enablement Fund will be the responsibility of the Government entities receiving the awards, subject to the provisions of the Operations Manual (OM) for the Enablement Fund. A PMO led by a PD will be established and will be mainly responsible for: (a) planning, coordination, implementation, and monitoring of project activities; (b) procurement and FM; and (c) reporting on project progress. The PMO will work closely with different units under the Ministry, ICT Division, BCC, and other project beneficiary line agencies. The PMO would consist of the following four units, headed by four Deputy Project Directors (DPDs) and assisted by their Assistant Project Directors (APD) – (a) Implementation Support Unit; (b) IaaS and PaaS Unit, (c) SaaS and Digital Services Unit, and (d) ICT Governance and Digital Services Promotion Unit.

Figure 3. Organization Chart for Government’s IDGP Implementation Team

IDGP SC

PMO

Secretariat to IDGP SC

PD

DPD

IaaS, PaaS

Assistant Project Director (APD)

Technical specialists as needed

DPD

SaaS and eServices

APD

Technical specialists as needed

DPD

ICT Governance and E-services Promotion

APD

Technical Specialists as needed

DPD

Implementation Support Unit


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. F. Project location and Salient physical characteristics relevant to the safeguard analysis (if known)

The project will install mainly software and limited hardware within existing facilities owned by the implementing agencies. Project will not include any notable civil works, except the minor interior works required to install hardware within the aforementioned facilities. Most of the activities will be implemented in Dhaka, as these are national level e-Government systems and services. The only activities to be implemented outside Dhaka are the awareness and usage promotion campaigns for 5 million citizens; and 50,000 business across Bangladesh. The change and political economy management program for public officials, is also expected to have activities to engage and train public officials in different levels of government, including district and upazilla levels. The Project will provide specific plans and agreements for managing e-waste and fire-safety issues if the hardware is found to be significantly more than anticipated after appraisal.

G. Environmental and Social Safeguards Specialists on the Team

Sabah Moyeen, Social Safeguards Specialist Iqbal Ahmed, Environmental Safeguards Specialist

SAFEGUARD POLICIES THAT MIGHT APPLY

Safeguard Policies Triggered? Explanation (Optional)

Environmental Assessment OP/BP 4.01 No

Natural Habitats OP/BP 4.04 No

Forests OP/BP 4.36 No

Pest Management OP 4.09 No

Physical Cultural Resources OP/BP 4.11 No

Indigenous Peoples OP/BP 4.10 Yes

The Project will carry out mass awareness and usage promotion of its digital services, which will be implemented in areas where Indigenous Peoples are present.

Involuntary Resettlement OP/BP 4.12 No

Safety of Dams OP/BP 4.37 No


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Projects on International Waterways OP/BP 7.50

No

Projects in Disputed Areas OP/BP 7.60 No

KEY SAFEGUARD POLICY ISSUES AND THEIR MANAGEMENT

A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: The proposed project seeks to improve digital services across government agencies, and to their external constituents of Bangladesh citizens and businesses. The project's digital services pilot to 5 million initial citizen users could marginalize particular groups of citizens if they are excluded from the pilot. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The excluded groups of citizens could become part of a digital divide, due to their more limited exposure to the piloted digital information/services for citizens. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. The project will conduct a diversified pilot to minimize adverse impact. The pilot will be carried out across the country (urban and rural), and particular social groups of Bangladeshis (such and the poorest, and indigenous people) will be deliberately targeted as potential users of these services. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. The borrower will design the pilot to include (i) identification of the various social groups (ii) identification of the more disenfranchised in these groups, based on existing literature, (iii) disproportionately more pilot users from the more disenfranchised groups; such as rural women and indigenous people. These will be built into the scope of work for the borrower's implementation. The Project will provide an action plan to address the capacity enhancement needs of both the borrower and its vulnerable groups. This includes tribal communities and ensure that they will be made aware of the benefits of digital services through the awareness campaigns and are able to utilize the digital services introduced and/or to reach out to third party intermediaries who can assist them in the online transaction. The PMU through its implementation partners will be involved in mobilizing the tribal people for group formation and strengthening through awareness campaign and digital service usage training. Likewise, capable members of local ethnic groups, including women will be engaged by the concerned agencies to undertake information dissemination works, preparing the beneficiary groups for Project activities and contributory works. Local media will also uplift the advocacy organization at local level to promote Project benefit on more sustainable manner. The PMU and its implementation partners will be actively involved in disseminating information on to the target groups beneficiaries about the key components, subcomponents, activities, eligibility and selection criteria, stakeholder involvement, contribution of the Project and its implementation process.


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5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The key stakeholder is the implementing agency, BCC. BCC will hire a firm as part of the Online Enablement Fund activity, and the firm will need to conduct consultations with representatives from various social groups to ensure that there is priority and focus on the poor, and indigenous people. Free, prior, and informed consultations will be held with small ethnic and other vulnerable communities, CBOs, NGOs, and small ethnic community institutions (if any) where small ethnic community populations are found to be in the sub-Project areas. These free, prior, and informed consultations will take place during resource development planning process, and their broad community support will be documented. The safeguard policies will also be disclosed to these target users for them to better understand the project and their related rights. B. Disclosure Requirements

OPS_IP_DIS CLOSURE_TA BLE

Indigenous Peoples Development Plan/Framework

Date of receipt by the Bank Date of submission for disclosure

02-Jan-2018 10-Oct-2017

"In country" Disclosure

Bangladesh 10-Jan-2018

Comments

Indigenous people safeguards framework has been uploaded on the implementation agency's website for public access and download, at http://www.bcc.gov.bd/site/page/963da98f-5c6b-4b71-90ab-2a3a49d4b686/Indigenous-People-Framework

C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting)

OPS_IP_COM P_TA BLE

OP/BP 4.10 - Indigenous Peoples Has a separate Indigenous Peoples Plan/Planning Framework (as appropriate) been prepared in consultation with affected Indigenous Peoples? Yes If yes, then did the Regional unit responsible for safeguards or Practice Manager review the plan? Yes


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If the whole project is designed to benefit IP, has the design been reviewed and approved by the Regional Social Development Unit or Practice Manager? NA

OPS_ PDI_ COMP_TA BLE

The World Bank Policy on Disclosure of Information

Have relevant safeguard policies documents been sent to the World Bank for disclosure? Yes Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? Yes

All Safeguard Policies

Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? No

Have costs related to safeguard policy measures been included in the project cost? Yes

Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? No

Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? No

CONTACT POINT

World Bank

Siou Chew Kuek Senior ICT Policy Specialist

Asna Zareen Operations Officer

Borrower/Client/Recipient

Ministry of Finance


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Implementing Agencies

Bangladesh Computer Council

Swapan Kumar Sarker

Executive Director

[email protected]

FOR MORE INFORMATION CONTACT

The World Bank

1818 H Street, NW

Washington, D.C. 20433

Telephone: (202) 473-1000

Web: http://www.worldbank.org/projects

APPROVAL

Task Team Leader(s): Siou Chew Kuek Asna Zareen

Approved By

Safeguards Advisor:

Practice Manager/Manager: Boutheina Guermazi 25-Jan-2018

Country Director: Rajashree S. Paralkar 29-Jan-2018

http://www.worldbank.org/projects